Islamic finance news wrap: Saudi's PIF to raise $3.5bn in Islamic bonds. Who will follow suit?

Here's a roundup of key developments across the Islamic finance ecosystem during the first three weeks of October

Editor's note: Shariah products are in the spotlight across the Muslim world, and why not?

In a first, Saudi Arabia's wealth fund plans to list Islamic bonds on the London Stock Exchange, potentially raising billions. A Qatari bank too, launched a new Shariah-compliant fund feeding into its wealth management offerings, while a subsidiary of Tanzanian GSM Group unveiled a Shariah-aligned Takaful product.

Investment

United Kingdom / Saudi Arabia
Saudi Arabia's PIF to list $3.5bn Islamic bonds on London Stock Exchange
Saudi Arabia's Public Investment Fund is set to list first dollar-denominated $3.5 billion Islamic bonds on the London Stock Exchange's International Securities Market, as part of its diversification strategy for funding sources.

These dual-tranche international Islamic bonds, or sukuk, saw robust demand, being oversubscribed more than seven times, with an order book exceeding $25 billion. (The National News)

Qatar
Commercial Bank introduces new Shariah compliant fund with Franklin Templeton
Commercial Bank organized an exclusive event for its premium banking customers to announce the launch of a new Shariah Global Multi-Asset Fund managed by Franklin Templeton Investments.

This move aligns with Commercial Bank's strategic objective of wealth management and providing customers with diverse investment solutions. (Zawya)

Company News

Tanzania
Galco Insurance Brokers launches Sharia-compliant Takaful product
Galco Insurance Brokers, a subsidiary of the GSM Group, has introduced a Sharia-compliant insurance product called 'Takaful.'

Unlike traditional insurance, Takaful operates on principles of cooperation and shared responsibility, with members contributing to a pool system to protect each other against loss or damage. (The Citizen)

United Kingdom
ICIEC takes center stage at the 2023 London Sukuk Summit
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the IsDB Group, is set to play a pivotal role in the 2023 London Sukuk Summit.

This year's summit, focusing on "The Future of Sukuk Innovation through ESG & Green Sukuk," holds significant importance amid market volatility. With an emphasis on ESG considerations, green finance, and risk mitigation, the event will be a platform for groundbreaking ideas within Islamic capital markets. (Zawya)

Trade Developments

United States
AlHuda CIBE and Holy Book Finance collaborate to boost Islamic finance
Islamic finance, an increasingly global phenomenon, is extending its influence to European countries and the United States, gaining recognition as a sustainable and superior financial alternative.

In light of this importance, AlHuda CIBE in Dubai, UAE, and Holy Book Finance LLC have signed a Memorandum of Understanding (MOU). (Zawya)

ESG Developments

Malaysia
New Islamic finance offering for Pengerang Energy Complex
ChemOne Group has introduced an Islamic tranche within an Export Credit Agency (ECA) backed project financing for the Pengerang Energy Complex (PEC) in Malaysia.

This innovative structure enables Islamic Banks to collaborate with traditional commercial banks in funding the project as it approaches financial close. The Islamic tranche for PEC amounts to a substantial $375 million or more. (Hydrocarbon Engineering)

Kuwait
Second phase of construction project for IDPs commences
The Kuwait Zakath housing village's Foundation Stone Laying Ceremony marked the launch of its second phase, presided over by Kuwait's Urban Development and Housing Minister, Prasanna Ranatunga.

Local construction firm Zakat Houses is funding the project, having already completed the first phase. The project, initiated through an invitation from the Minister of State for Rural Economy, Kader Mastan, is set to comprise 125 homes upon completion. (Construction Review)

Qatar
Fifth joint training forum for Zakat agencies in GCC states begins
The fifth joint training forum for Zakat agencies in GCC states began in Doha, focusing on the theme "Creativity in Marketing Zakat Institutions' Projects."

Organized by the Zakat Affairs Department in collaboration with the General-Secretariat of GCC states, the event is held under the patronage of Minister of Awqaf and Islamic Affairs H.E. Ghanem bin Shaheen bin Ghanem Al Ghanim. (The Peninsula)